Electronics For Imaging (EFII) 8-K EFI Reports Third Quarter 2007 Results

Exhibit 99.1

For more information:	Investor Relations;
John Ritchie	JoAnn Horne
Chief Financial Officer	Market Street Partners
EFI	415-445-3239
650-357-3500

EFI Reports Third Quarter 2007 Results

Revenues of $158.3 million, GAAP EPS $0.13, Non-GAAP EPS $0.34

Company current with SEC filings, resumes buy back program

Foster City, Calif. – October 23, 2007 – EFI (Nasdaq: EFII), the world leader in customer-focused digital printing, announced today its results for the third quarter of 2007. For the quarter ended September 30, 2007, the Company reported revenues of $158.3 million, up approximately 15% when compared to third quarter 2006 revenue of $138.2 million. For the nine months ended September 30, 2007 revenues were $468.6 million, up approximately 14% when compared to $411.2 million in the same period in 2006.

Non-GAAP net income was $22.3 million or $0.34 per diluted share in the third quarter of 2007, up approximately 17% when compared to $18.5 million or $0.29 per diluted share for the same period in 2006.

Non-GAAP net income was $63.5 million or $0.96 per diluted share for the nine months ended September 30, 2007, up 14% from $55.0 million or $0.84 per diluted share for the same period in 2006.

GAAP net income was $8.1 million or $0.13 per diluted share in the third quarter of 2007, compared to a net loss of $27.7 million or $0.49 per diluted share for the same period in 2006.

GAAP net income was $19.8 million or $0.32 per diluted share for the nine months ended September 30, 2007, compared to a net loss of $3.7 million or $0.07 per diluted share for the same period in 2006.

Non-GAAP net income is computed by adjusting GAAP net income by the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as other non-recurring charges and gains.

“While we are pleased that we were able to achieve 15% year-over-year revenue growth in the third quarter, the revenue shift to the lower margin inkjet business negatively impacted our earnings per share,” said Guy Gecht, CEO of EFI. “Our inkjet business, which grew 36% year-over-year, including a record quarter for ink revenues largely offset the Fiery business, which came in below revenue expectations. We look for this trend to continue in Q4, as we maintain the strong growth in our inkjet business, putting continued pressure on margins.” Mr. Gecht continued, “We are pleased that we have concluded the restatement of our financials and are now current with our SEC filings, allowing us to resume our share buyback activity.”

Outlook for Q4 2007

• For the fourth quarter of 2007, the Company expects revenues in the range of $160 million to $165 million.

• For the fourth quarter of 2007, the Company expects non-GAAP earnings per share of $0.35 to $0.38.

• For the fourth quarter of 2007, the Company expects GAAP earnings per share of $0.23 to $0.26.

• For fiscal 2007, the Company expects a non-GAAP tax rate of 24% to 25%.

GAAP net income outlook includes an estimated charge related to stock-based compensation expense in accordance with FAS 123R. This estimate is subject to change. Both the non-GAAP and the GAAP earnings estimates include the 9.1 million shares related to the Company’s contingently convertible debt when dilutive to earnings.

Reconciliation of non-GAAP to GAAP EPS estimates

	Three Months Ended December 30, 2007
Non-GAAP EPS estimate	$	0.35		$	0.38
Amortization of acquisition-related intangibles – pre tax	$	(0.13	)	$	(0.13	)
Amortization of stock based compensation – pre tax	$	(0.07	)	$	(0.07	)
Tax effect of non-GAAP adjustments	$	0.08		$	0.08
GAAP EPS estimate	$	0.23		$	0.26

EFI will discuss the Company’s financial results by conference call at 2:00 p.m. PDT today. Instructions for listening to the conference call over the Web are available on the investor relations portion of EFI’s website atwww.efi.com.

About our Non-GAAP Net Income and Adjustments

To supplement our consolidated financial results prepared under generally accepted accounting principles, or GAAP, we use a non-GAAP measure of net income that is GAAP net income adjusted to exclude certain recurring and non-recurring costs, expenses and gains. Our non-GAAP net income gives an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside our core operating results. In addition, non-GAAP net income is among the primary indicators management uses as a basis for planning and forecasting future periods. These measures are not in accordance with or an alternative for GAAP and may be materially different from non-GAAP measures used by other companies. We compute non-GAAP net income by adjusting GAAP net income with the impact of recurring amortization of acquisition-related intangibles, stock-based compensation expenses, certain tax charges, as well as non-recurring charges and gains. The presentation of this additional information should not be considered in isolation or as a substitute for net income prepared in accordance with GAAP.

Safe Harbor for Forward Looking Statements

Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These statements in this press release include “Our inkjet business, which grew 36% year-over-year, including a record quarter for ink revenues largely offset the Fiery business, which came in below revenue expectations… We look for this trend to continue in Q4, as we maintain the strong growth in our inkjet business, putting continued pressure on margins… For the fourth quarter of 2007, the Company expects revenues in the range of $160 million to $165 million… For the fourth quarter of 2007, the Company expects non-GAAP earnings per share of $0.35 to $0.38… For the fourth quarter of 2007, the Company expects GAAP earnings per share of $0.23 to $0.26… For fiscal 2007, the Company expects a non-GAAP tax rate of 24% to 25%… GAAP net income outlook includes an estimated charge related to stock-based compensation expense in accordance with FAS 123R. This estimate is subject to change.”

Past performance is not necessarily indicative of future results. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially, or cause a material adverse impact on our results, which include, but are not necessarily limited to, the following: (1) management’s ability to forecast revenues, expenses and earnings, especially on a quarterly basis; (2) unexpected declines in revenues or increases in expenses; (3) any additional costs and expenses related to the investigation into the Company’s past stock option grants and stock option grant practices; (4) the restatement of or significant adjustments to the Company’s reported historical results for prior periods; (5) the potential adverse impact of litigation relating to the Company’s past stock grants and stock option practices; (6) the possibility of additional

litigation and governmental actions relating to our past stock grants and stock option practices; (7) current world-wide financial, economic and political difficulties and downturns, including adverse variations in foreign exchange rates, that could affect demand for our products; (8) a significant decline or delay in demand for our products by any of our important OEM partners; (9) the unpredictability of development schedules and commercialization of the products manufactured and sold by our OEM partners; (10) variations in growth rates or declines in the printing and imaging markets across various geographic regions; (11) changes in historic customer order patterns, including changes in customer and channel inventory levels; (12) changes in the mix of products sold leading to variations in operating results; (13) the uncertainty of market acceptance of new product introductions; (14) delays in product deliveries that cause quarterly revenues and income to fall significantly short of anticipated levels; (15) competition and/or market factors, which may adversely affect margins; (16) competition in each of our businesses, including competition from products internally developed by EFI’s customers; (17) excess or obsolete inventory and variations in inventory valuation; (18) intense competition in the industrial and commercial digital inkjet market; (19) the uncertainty of continued success in technological advances, including development and implementation of new processes and strategic products; (20) the challenges of obtaining timely, efficient and quality product manufacturing; (21) litigation involving intellectual property rights or other related matters; (22) our ability to adequately and timely service our debt; (23) our ability to successfully integrate acquired businesses, without operational disruption to our existing businesses; (24) the potential that investments in new business strategies and initiatives could disrupt the Company’s ongoing businesses and may present risks not originally contemplated; (25) the potential loss of sales, unexpected costs or adverse impact on relations with customers or suppliers as a result of acquisitions; (26) differences between the financial results as filed with the SEC and the preliminary results included in our earnings press releases due to the complexity in accounting rules; and (27) any other risk factors that may be included from time to time in the Company’s SEC reports.

EFI undertakes no obligation to update information contained in this press release. For further information regarding risks and uncertainties associated with EFI’s businesses, please refer to the section entitled “Factors That Could Adversely Affect Performance” in the Company’s SEC filings, including, but not limited to, its annual report on Form 10-K and its quarterly reports on Form 10-Q, copies of which may be obtained by contacting EFI’s Investor Relations Department by phone at 650-357-3828 or by email atinvestor.relations@efi.com or EFI’s Investor Relations website athttp://www.efi.com.

About Electronics for Imaging, Inc. / EFI

EFI (www.efi.com) is the world leader in customer-focused digital printing innovation. EFI’s award-winning solutions, integrated from creation to print, deliver increased performance, cost savings and productivity. The company’s robust product portfolio includes Fiery^® digital color print servers; VUTEk^® superwide digital inkjet printers, UV and solvent inks; Jetrion^® industrial inkjet printing systems; print production workflow and management information software; and corporate printing solutions. EFI maintains 23 offices worldwide.

Electronics for Imaging, Inc.

Condensed Consolidated Statements of Income

	Nine Months Ended September 30,						Three Months Ended September 30,
(in thousands, except per share data) (unaudited)	2007			2006			2007			2006
Revenue	$	468,567		$	411,199		$	158,295		$	138,212
Cost of revenue		192,291			164,888			66,089			56,036
Gross profit		276,276			246,311			92,206			82,176
Operating expenses:
Research and development		107,630			94,190			36,957			32,282
Sales and marketing		89,903			72,462			30,117			23,711
General and administrative		53,660			31,071			15,723			12,511
Acquisition and intangible amortization costs		26,085			26,821			8,655			8,767
Total operating expenses		277,278			224,544			91,452			77,271
Income (loss) from operations		(1,002	)		21,767			754			4,905
Interest and other income, net:
Interest and other income		22,216			16,878			7,709			6,730
Gain on sale of product line		—			6,995			—			—
Interest expense		(3,751	)		(3,754	)		(1,250	)		(1,251	)
Total interest and other income, net		18,465			20,119			6,459			5,479
Income before income taxes		17,463			41,886			7,213			10,384
Provision for income taxes		2,384			(45,562	)		892			(38,112	)
Net income	$	19,847		$	(3,676	)	$	8,105		$	(27,728	)
Fully Diluted EPS calculation
Net income	$	19,847		$	(3,676	)	$	8,105		$	(27,728	)
After-tax adjustment of convertible debt-related costs		2,250			—			750			—
Income for purposes of computing diluted net income per share	$	22,097		$	(3,676	)	$	8,855		$	(27,728	)
Net income per diluted common share	$	0.32		$	(0.07	)	$	0.13		$	(0.49	)
Shares used in diluted per share calculation		68,598			56,518			68,725			56,267

Electronics for Imaging, Inc.

Reconciliation of GAAP Net Income to Non-GAAP Net Income

	Nine Months Ended September 30,						Three Months Ended September 30,
(In thousands, except per share data) (unaudited)	2007			2006			2007			2006
Net income	$	19,847		$	(3,676	)	$	8,105		$	(27,728	)
Acquisition and intangible amortization costs		26,085			26,821			8,655			8,767
Write-off of abandoned acquisition costs		1,393			—			—			—
Adjustment to allowance for bad debt		—			(3,773	)		—			—
Gain on sale of product line		—			(6,995	)		—			—
Special committee investigation costs		14,463			—			3,122			—
Stock based compensation expense – Cost of revenue		1,681			1,162			572			490
Stock based compensation expense – Research and development		9,642			5,661			4,348			2,301
Stock based compensation expense – Sales and marketing		3,589			2,178			1,260			898
Stock based compensation expense – General and administrative		7,762			7,446			2,649			2,855
Severance costs		1,501			—			1,501			—
Tax effect of non-GAAP adjustments		(22,444	)		26,195			(7,929	)		30,917
Non-GAAP net income	$	63,519		$	55,019		$	22,283		$	18,500
After-tax adjustment of convertible debt-related expense		2,250			2,250			750			750
Income for purposes of computing diluted non-GAAP net income per share	$	65,769		$	57,269		$	23,033		$	19,250
Non-GAAP net income per diluted common share	$	0.96		$	0.84		$	0.34		$	0.29
Shares used in per share calculation		68,598			68,429			68,725			66,663

Electronics for Imaging, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)	September 30, 2007		December 31, 2006
Assets
Cash, cash equivalents and short-term investments	$	549,963	$	510,171
Accounts receivable, net		97,245		96,252
Inventories, net		37,438		35,225
Other current assets		26,618		13,199
Total current assets		711,264		654,847
Property and equipment, net		56,985		52,646
Restricted investments		88,580		88,580
Goodwill		211,624		212,992
Intangible assets, net		94,097		120,030
Other assets		36,489		15,557
Total assets	$	1,199,039	$	1,144,652
Liabilities & Stockholders’ equity
Current Portion of Long-term obligations	$	240,000	$	240,000
Accounts payable		44,358		41,834
Accrued and other liabilities		82,172		89,415
Income taxes payable		13,082		21,823
Total current liabilities		379,612		393,072
Long term taxes payable		23,032		—
Total liabilities		402,644		393,072
Total stockholders’ equity		796,395		751,580
Total liabilities and stockholders’ equity	$	1,199,039	$	1,144,652

Revenue Break-Down

	Nine Months Ended September 30,				Three Months Ended September 30,
(in thousands) (unaudited)	2007		2006		2007		2006
Revenue by Product
Controller products	$	243,741	$	229,700	$	78,952	$	78,199
Inkjet products		159,987		125,760		57,057		42,083
Professional printing applications		64,839		55,739		22,286		17,930
Total	$	468,567	$	411,199	$	158,295	$	138,212
Revenue by Geographic Area
Americas	$	250,232	$	217,062	$	84,609	$	71,639
Europe		161,667		126,726		53,808		37,825
Japan		42,977		51,121		14,768		23,224
Rest of World		13,691		16,290		5,110		5,524
Total	$	468,567	$	411,199	$	158,295	$	138,212